Secret Strategies For Coming Up With Down Payment Funds

The current real quick quote car insurance situation is Krofft Supershow killer for most borrowers. While prices are down to very attractive numbers, getting funding to buy a home is very tough given the current credit crunch.

If you want to get funding these days, you need to eliminate the risk most lenders feel in providing loans. Specifically, you need to come up with sizeable down payments. Using a 20 to 25 percent down payment is going to make a lender feel more comfortable giving you money. Whereas a person putting down 3 percent wont be particularly bothered about a short sale or foreclosure, one that puts 20 percent down will!

Now, 20 to 25 percent is a lot of money. The question you probably have is where to find such funds. Lincoln Kennedy coincidences there are a number of strategies you can pursue. Let's take a closer look.

The obvious approach is to save up the money. Americans are not exactly known for disciplined saving efforts, so this looks like a laughable strategy at first glance. Well, it really isn't if you think outside of the box. Many of us actually do save money. We just don't use savings accounts. Instead, we use retirement accounts.

Many retirement plans have provisions allowing you to borrow part of your money. Every plan is different, so re mortgage need to check with your plan administrator. Regardless, many plans have a 50 percent provision. This essentially says that you can borrow or use 50 percent of your vested interest in the plan as a down payment on a home purchase. This can be a very big number depending on how long you have been saving.

A second approach is one you've probably used before. I would like to introduce you to a special lender - the Bank of Mom and Dad. Don't laugh. The final step for many parents in parenting 101 is to loan their kids money for a down payment. Heck, some will even give it to you outright. Never look a gift horse in the mouth...

A third secret strategy involves the seller of the property. Most sellers can't give away their homes at this time. This makes them highly motivated to work a creative deal. Many will give you the money needed for a down payment as a second mortgage. A seller willing to do this should also be viewed as one who took good care of the property. If they didn't, they probably wouldn't be willing to put their money in the equation.

So, which strategy is best? Well, it depends on your situation. Most people actually use a combination of these strategies. With the low prices we are seeing in homes, just getting into the market is the key these days.

Raynor James writes about mortgage loans for FSBOAmerica.org where you can read mortgage Spices and www.fsboamerica.org/Mortgage-Loans.cfm">compare mortgage lenders to find the best loans.